The marginal benefit from the activity is equal to the marginal cost
Answer:
1. Prepaid insurance (Dr.) $6,300
Cash (Cr.) $6,300
2. Cash (Dr.) $15,300
Unearned Income (Cr.) $15,300
3. Purchases (Dr.) $1,750
Accounts payable (Cr.) $1,750
Cost of Goods Sold (Dr.) $1,620
Ending Inventory (Dr.) $130
Purchases (Cr.) $1,750
4. Prepaid office rent (Dr.) $6,300
Cash (Cr.) $6,300
Explanation:
The adjusting entry is a journal entry recorded at end of accounting period to adjust events or transactions to comply with the accrual concept.
The closing entries are journal entries required to close a transaction or event in the period. The purpose is to follow matching concept of accounting.
Answer:
The solution of the given query is explained throughout the segment below.
Explanation:
The given values are:
Company issued amount,
= $6,500,000
Rate of interest,
= 6%
Time,
= 10 years
Now,
On bonds payable amortization, the discount will be:
= 
= 
=
($)
Interest expenses will be:
= 
= 
=
($)
E and b not really sure but it’s my best guess
Answer:
$67,960
Explanation:
Residual income = Operating income - (Average invested assets * Cost of capital)
Residual income = $108,000 - ($500,500 * 8%)
Residual income = $108,000 - $40,040
Residual income = $67,960
Thus, the residual income is $67,960